Journal Article

Housing affordability: recommendations for new research to guide policy

Abstract: This article highlights areas where economic research is needed to guide federal policymakers addressing the challenge of improving housing affordability. The author places these research recommendations in the framework of five key issues, reflecting policymakers? need to identify a rationale for government action; to employ a single, clear measure to gauge affordability; to understand the unintended consequences of current housing policies; to ensure that the political environment is considered when developing policy; and to decide whether to use housing finance reform as a means of achieving housing affordability. New research in these areas would reduce uncertainty in policy design choices, strengthen the evidence base on effective policy interventions, help policymakers evaluate risks, and make salient the trade-offs between different policy objectives.

Keywords: housing; public policy; affordability;

JEL Classification: H2; R21; R3; H1; R52;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Economic Policy Review

Publication Date: 2018

Issue: 24-3

Pages: 138-144